The Meghalaya State Electricity Regulatory Commission had earlier set a rule under its 2018 Supply Code that all electricity consumers must maintain an average monthly power factor between 0.90 and 0.95. If the power factor drops below 0.90, the consumer is required to pay compensation charges, and if it falls below 0.7 and is not corrected within a month, the supply could be disconnected. This rule applies especially to those who are not billed based on the kVAh tariff and mandates the installation of LT capacitors for improving power factor.
Recently, the Meghalaya Power Distribution Corporation Limited (MePDCL) approached the Commission for clarity regarding this rule. In their letter dated 6th May 2025, MePDCL stated that they have been applying the penalty only to consumers with smart meters because smart meters can measure power factors accurately. However, for consumers with conventional meters, it is technically not possible to monitor and penalize based on power factor. As a result, only those with smart meters are being penalized, leading to an unfair situation among consumers within the same category.
MePDCL considered this selective imposition as discriminatory and requested the Commission to intervene under its special powers to resolve the issue. The Commission reviewed the request and agreed that enforcing the rule fairly for all consumers is currently not possible due to the technical limitations of conventional meters. Therefore, to avoid unfair treatment, the Commission invoked its powers under Regulation 12.7 and 12.9 of the Supply Code.
Under these powers, the Commission is allowed to remove any difficulty in implementing the code and to make decisions that ensure fairness and justice for consumers. Using this authority, the Commission decided to keep the enforcement of the power factor rule in Regulation 4.2(10) on hold for all low-tension (LT) consumers who are not billed on the kVAh tariff. This hold will continue until all LT consumers are equipped with smart meters.
The Commission also instructed MePDCL to inform them once all LT consumers have smart meters installed. Once that is achieved, the Commission will revisit and review the enforcement of the regulation.
The Commission recognized the technical challenge faced by MePDCL and acted to ensure fairness by suspending the rule temporarily for certain consumers. This move aims to prevent inequality in how consumers are treated under the electricity regulations until the infrastructure allows for equal enforcement.
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